In sales cut-off testing,the auditor uses the inspection procedure of vouching and tracing to gather evidence about which assertion(s)?
A)existence and occurrence
B)accuracy
C)valuation or allocation
D)completeness
E)presentation and disclosure
F)both A and B
G)both A and D

Question

Quizplus · Accepted Answer

In sales cut-off testing, the auditor uses vouching to gather evidence about existence and occurrence assertion by tracing sales transactions from sales journal to shipping documents, sales invoices and customer orders. The auditor uses tracing to gather evidence about completeness assertion by selecting shipping documents and customer orders for a few days prior and after the year end and then verifying that these orders were included in the sales journal. Therefore, the best choice is G, which includes both existence and occurrence and completeness assertions.

In Sales Cut-Off Testing,the Auditor Uses the Inspection Procedure of Vouching